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Bormio lies in the northeast of the Lombardy region at the top of the Valtellina, a broad glacial valley formed by the Adda River that flows down into Lake Como. It is linked to other valleys via four passes:

Due to its thermal baths at Bagni Vecchi, Bagni Nuovi and Terme di Bormio, Bormio has long been a tourist attraction. Members of the Roman aristocracy already travelled to Bormio in order to enjoy warm baths in the mountainous scenery. Most of these thermal baths are still in use today.

The town is centred on the historic Piazza Cavour and Via Roma, a historic main trading point on the route from Venice to Switzerland. Bormio retains its unique medieval town centre, attracting many tourists, mainly Italian, from Milan and other cities.

Bormio is a regular stop on the World Cup circuit, usually with a men's downhill in late December. The Pista Stelvio, named after Stelvio Pass, is one of the most challenging downhill courses in the world. It is second-longest course on the World Cup circuit, behind only the Lauberhorn in Wengen, Switzerland. For the December 2010 World Cup race, the Stelvio had a vertical drop of 1,010 metres (3,314 feet) on a course length of 3.27 km (2.03 mi); the winning time was just under two minutes.[2][3]